Bessette/Pitney’s AMERICAN GOVERNMENT AND POLITICS: DELIBERATION, DEMOCRACY AND CITIZENSHIP reviews the idea of "deliberative democracy." Building on the book, this blog offers insights, analysis, and facts about recent events.

Search This Blog

Monday, November 3, 2014

In-State Tuition as a Subsidy for the Rich

States across the country subsidize higher education for their residents by paying the difference between in-state tuition rates and what a college education really costs. This is so much a part of the American fabric that few stop to think about its regressive aspect.

“We are subsidizing affluent people,” says Sandy Baum, an expert on higher education finance and a senior fellow at the nonprofit Urban Institute. “Young people from affluent families are much more likely to go to college, and more likely to go to four-year colleges, and more likely to go to the flagship colleges.”

And flagship colleges are where the subsidy is largest. Wallace Loh, the thoughtful president at College Park, said during a recent visit to The Post that in-state tuition plus fees at College Park (now $9,400) are well below the median of peer research universities. Meanwhile, the state appropriates $19,000 for each Maryland student to help pay for their education, he said. Does this represent sound policy?

“I think that is the million-dollar question,” Loh responded. “Maryland has the highest median income in all the nation, and we give proportionately the least amount of financial aid. We have a model of low tuition and low aid. So the state is subsidizing those who can easily pay higher.”